On August 15, the State Bank announced the conclusion of the inspection of EVN Finance Joint Stock Company.
The inspection conclusion recorded some feasible aspects and violations and shortcomings of EVN Finance.
During the inspection period, the company ensured the sufficient number of personnel to be members of the Board of Directors and Board of Directors according to regulations. The General Director meets the conditions and standards of the Law on Credit institutions. EVN Finance has issued full internal regulations and guidelines for operations related to the company's operations.
The Board of Directors has led and directed the Company's activities to achieve many planned targets, credit growth and business results of the Company have all increased over the years.
However, besides the above achievements, EVN Finance still has many violations and shortcomings.
To commit many violations in governance and operation
Regarding governance and operation activities, the Board of Directors of EVN Finance has authorized the General Director to issue a number of internal regulations that are not within its authority as prescribed in Article 23 of Circular No. 30/2015/TT-NHNN. This inappropriate assignment of authority shows that the Board of Directors has not effectively performed its tasks and powers in inspecting, supervising and directing the General Director to perform assigned tasks, leading to violations in credit granting activities.
EVN Finance's Board of Supervisors is also assessed as not performing its tasks and powers effectively according to regulations in closely monitoring compliance with the law and the Company's Charter. Timely detection of shortcomings and violations in management and operation, compliance with legal regulations and internal regulations of EVN Finance; allowing shortcomings and violations in credit granting activities to occur.
EVN Finance General Director signed and issued a number of internal regulations related to credit activities; debt classification; provisioning, using provisions to handle risks not within the authority as prescribed in Article 23 of Circular No. 30/2015/TT-NHNN (effective until July 1, 2024).
In addition, EVN Finance has sent an official dispatch to change the information of the person responsible for money laundering prevention and control (PCRT) 12 days later than the regulations in Point d, Clause 10, Article 5 of Circular No. 09/2023/TT-NHNN.
In particular, the General Director during the inspection period also exercised his rights and obligations under his authority related to the daily business activities of credit institutions but did not fully comply with legal regulations, causing violations in credit granting activities.
Focus credit on customers with potential risks
The inspection results for large customer groups show that EVN Finance has a high credit concentration, the granting of credit to customers has some violations, lending problems when customers are not eligible for loans; violating appraisal and lending decisions; checking and supervising loan capital; loan documents; loan terms; receiving collateral; classifying debts and setting up risk reserves in violation of regulations; lending in foreign currency in violation of legal regulations;... The inspection conclusion has issued a number of warnings of risks in lending activities for customers.
According to the conclusion, in addition to objective reasons, some individuals and professional departments of the company have not complied with internal regulations of EVN Finance in performing their duties. The direction, management, supervision and internal audit of the Board of Directors, the Board of Directors, and the Board of Directors were not effective, and violations and problems mentioned above still occurred.
The Chief Inspector issued a decision to sanction administrative sanctions in the field of banking and currency with a total fine of VND 635 million for 3 administrative violations of EVN Finance:
The acts include: granting credit to organizations and individuals who do not meet the conditions prescribed by law; Classifying assets that are not in accordance with the provisions of law; granting domestic credit in foreign currency not in accordance with the provisions of law.
On June 6, 2025, this unit paid the fine.
